Investment appraisal - Essay Example

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Investment appraisal

This analysis has been conducted based on several financial theories related to equity valuation. 1 Introduction 1.1 History of Google Google, a name synonymous with world leader in specializing in internet related services and product. The product and services offered by Google are vast and its operations are expanding at a rapid pace. The primary services offered by this giant corporation include cloud computing, software and online advertising. As per the latest and historical financial analysis, the company has been deriving its main revenue from the Adwords. Google was founded Larry Page and Sergey Brin who own about 16% of the shares of the company as per the latest annual report of the company. Soon after the initial public offer (IPO), the company’s revenue, and in turn its profitability has increased by leaps and bounds. The initial public offering of the company took place on August 19, 2004. On this historical date, around 19,605,052 shares of the company were offered at a price of $85 per shares. The mode of the sale of the shares was suggested to be through online auction. ...Show more

Summary

Contents Abstract 2 1 Introduction 3 1.1 History of Google 3 2Financial Valuation 3 2.1 Introduction to equity valuation 3 2.2 Equity valuation techniques 3 2.3 Net Asset Valuation 4 2.4Price/Earnings Valuation 4 2.5Dividend Growth Model 5 2.6 Different form of markets 6 3 Cost and benefits of going public and issuing shares 7 3.1 Advantages and disadvantages of issuing equity shares 7 References 8 Abstract Google can be regarded as the leader in the technology industry in the current era…
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